Press release from CNW Group
Endeavour Mining Closeout of Youga Gold Hedge Book
Tuesday, November 29, 2011
Toronto Stock Exchange: EDV
MONACO, Nov. 29, 2011 /CNW/ - Endeavour Mining Corporation ("Endeavour" or the "Corporation") (TSX:EDV) is pleased to announce it has closed out the gold hedge book (" Hedge Book") relating to its Youga Gold Mine ("Youga") in Burkina Faso. The closeout of the Hedge Book means that all gold production from Youga is now available to be sold into the spot market.
As of September 30, 2011, the remaining ounces covered by the $700 per ounce call options totalled 29,200 ounces with the last commitment deliverable in August 2012. Call options totalling 5,668 ounces were settled with regular scheduled deliveries from Youga gold production during October and November 2011. The residual balance of 23,532 ounces was settled for a cash payment of $24.0 million, which implies an effective gold price of $1,719.97 per ounce inclusive of transaction costs and contango charges.
Neil Woodyer, CEO, stated: "The early elimination of the Youga gold hedge improves our cashflow for 2012 and increases our corporate flexibility. With the pending completion of the merger with Adamus, we anticipate further de-hedging of the Nzema hedge book."
About Endeavour Mining Corporation
Endeavour is a gold producer. Endeavour also holds an extensive exploration land position and various advanced-stage development gold projects in West Africa. Endeavour has a global strategy, supported by financial resources and management's company building expertise, to grow into an intermediate gold producer through strategic acquisitions.
On August 21, 2011, Endeavour and Adamus announced they have entered into a definitive Merger Implementation Agreement to combine through an all-stock merger of equals transaction creating a new growth focused West African gold producer. Having received approvals from both Endeavour and Adamus shareholders, the merger is subject to the further approval of the Federal Court of Australia and a hearing is scheduled to be held on December 2, 2011.
The common shares of Endeavour Mining Corporation are traded on the Toronto Stock Exchange under the symbol "EDV".
On behalf of Endeavour Mining Corporation
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking information relating to the future performance of Endeavour Mining Corporation. Forward-looking information, specifically, that concerning future performance, is subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities commissions.
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